Smugmug
A venture for premium photo sharing:
Posted in: Pitch Pool
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David Vogt
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ETEC 522 – September 2012
Ventures in Learning Technology
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avninder 12:10 pm on September 17, 2012 Permalink | Log in to Reply
“YES, I would invest in this venture” or at least I would request more information before making a decision.
The CEO of Smugmug Don Macaskill exudes confidence and passion for his company while presenting this pitch. However, details regarding his management team and experience are not provided in this short video. It seems as though the CEO has done his homework when he claims that there is no online service that provides a premium photo-sharing service to paying customers. This was surprising to me as I would have guessed that there are many services like this available on the web even though all of the photo-sharing sites that I have seen either produce low quality images or have many ads. I have never searched for a service like this as it is not something that I would be willing to pay for however the presenter mentioned that they are profitable and growing so there is definitely a demand for their service.
Since this service is online, it is difficult to say what the realistic market size is. However since the company identifies itself as the only premium service they should be able to capture much of the high end online photo-sharing market. The CEO states that they have had ‘hundreds of thousands paying customers’ which is impressive.
Judging by the examples used by the presenter I would say that their destination is being well known as the ‘BMW’ of online photo sharing. Currently the competitive advantage of this company is that no one else who offers what they do. In such a competitive world however this can change very quickly. Copy-cat companies eager to gain market share and acquire revenues through their own yearly subscriptions can appear and change the status of this company.
The pitch did not go into many details regarding the marketing strategy, how much money was being asked for or how the investment would be used. Although I would not use this service myself and there is a risk of other players entering the market, I would likely invest because the CEO is knowledgeable and the company is profitable as a leader in what they do.
rebecca42 11:44 pm on September 20, 2012 Permalink | Log in to Reply
No, I would not invest in this venture. I think that the CEO is enthusiastic and definitely knows what he is talking about, but his appearance, both in his clothing and the choice of video, did not impress me. Even though it is a SmugMug brand hoodie, I’m not sure it’s a correct choice for inspiring confidence with other individuals who might want to invest, nor is the video, which is distracting (I’m not sure if the video is something we should also address, perhaps he didn’t post it?).
The pitch focussed on the strengths of the venture to date. They have a solid client base already, are expanding, and are offering a product that, at this time is fairly innovative. A site called Zenfolio appears to be their main competition and has expanded into their online video market as well, so I would want to know more about how they intend to deal with that before I would be willing to invest. Why would someone choose them over other companies that may offer similar services. They may be one of the leaders right now, but they have not made clear how they intend to keep their lead in this market.
For an elevator pitch it was fairly good, although information on where they are ready to expand into would have been useful. In particular I would like to know who the intended market is. Would they want to expand home (personal) use or is it meant for businesses that work in film or photography and how exactly would they go about getting customers? I also wonder if other emerging technologies would have an impact on this particular market. For instance, I don’t know much about cloud technology, but I wonder if this would have an effect on this company’s viability?
In addition, there is no discussion of what kind of support is required, the timeframe, the desired outcome, nor what the expected return is for investors. Once they have their subscriptions for the year how will they ensure that they keep clients and expand their business, what exactly do they have to offer investors? What do they want?
Based on the many questions that I have, and despite the likeability of the CEO, I would not be willing to invest in this venture.
jenniferschubertubc 1:40 pm on September 21, 2012 Permalink | Log in to Reply
Don Macaskill, CEO of SmugMug definitely displays confidence in both his product and its continued success in the photosharing market. Though this short clip does not offer us a glimpse into more of the behind the scenes aspects of the company (including details of the team or resources) a brief visit over to http://www.smugmug.com shows an easy to navigate website which offers, as part of its subscription service, readily available customer support, a key element in a successful marketing strategy.
According to the CEO, SmugMug is a unique venture in that it is a photosharing site unlike anything that exists currently on the market. There is no ad placement and photos are displayed at the highest quality found on the web. (A visit to the website does show that photos are available at much higher resolution than most sites (clearer at much larger sizes). The resolution of a photo however, largely lies in the hands of the photographer and their equipment on the front end.) Smugmug claims not to put limits on the amount of photos you are able to house yet there are “PRO” accounts on the site. What is the difference? Obviously more research, possible answered through the website would be needed in order to answer these questions.
I believe that the market size for this product would be a factor that would need constant re-evaluation. With the accessibility of smartphone apps that enhance and edit photography at the touch of a few buttons and smartphones with increased megapixel capabilities, many “everyday” consumers find themselves delving into amateur photography. Sales of DSLR cameras have continued to climb in recent years (leaving many professional photographers to complain) as many amateur photogs have overwhelmingly decided to “give it a go” at the art form, most often without proper training. Many who fancy themselves newfound “pros” will invest in all the bells and whistles, including serious editing software and photosharing sites. With the rise of social media platforms, everyone wants to share themselves at their very best, photos most definitely included.
According to the CEO of Smugmug, they are the only photosharing site that allows the height of quality (full resolution photos and HD video) with no pesky advertisements and readily available customer support. It is important to note, however, that this is a subscription-based venture. Many other platforms, though they may not offer the same quality, are available for free. In a struggling economy, how much will customers be willing to pay for what might be a slight decrease in quality? Is it really that important? These are questions that would need further market research.
The product is already in place and appears to be doing well… according to the information in this video. A review of the business plan as well as the past, current and projected numbers would be beneficial in reviewing the potential (continued?) success of the project as well as the longevity in a market that will surely continue to grow in this culture of digital creativity and sharing.
I would hesitate to invest in this project, if only for the projected influx of similar ventures which would cost the consumer less money in an already struggling economy. Everyone wants the best, but are they willing to pay for it in the end? I’m not fully convinced at this juncture.
Ranvir 6:03 pm on September 22, 2012 Permalink | Log in to Reply
Yes, I would invest in this venture. Don Macaskill, CEO of Smugmug displays confidence, passion and experience after successful launch of his premium photo sharing application. It seems that he has the resources he needs including a strong team which is why he is able to gain confidence of thousands of paid customers.
The venture concept is original and he has found a niche area to capitalize on. He figured there could be a need for people who would be willing to pay for quality and he was spot on! He seems to have done his homework well in terms of studying the market and focussing only on the premium clientele. He knows that he will have a select customer base and he is focussing on serving that niche.
The product seems to have a realistic market share and the venture seems to be successful already. The product seems to have a competitive edge over others such as providing facility to host/share HD quality, ad-free, secure photos and video from various devices. I do like the CEO and feel confident in investing in this venture.
Patrick Pichette 11:42 am on September 23, 2012 Permalink | Log in to Reply
Smugmug is an interesting venture but there are so many competitors out there that I’m not quite sure I’d be willing to invest in Smugmug. I agree that they have targeted a fairly niche market that should allow them to remain viable in the near future but there is fierce competition in this field that is shaping up with no clear indication as to whether one company has some sort of stranglehold on the others. It’ll likely come to marketing and integration with other social media sites that will determine a winner and I wouldn’t gamble money on this type of strategy. Having said that, Don Macaskill exudes confidence, passion, and demonstrates a willingness to captivate a crowd and get them on board so there may be hope here yet.